GUIDE TO FILING THE BUILDING PERMIT FEE The Building Standards Administration Special Revolving Fund

established by SB 1473

Information for

jurisdictions on

requirements for

submitting building

permit fees

February 2021

5th Edition

Acknowledgements

Governor Gavin Newsom

Secretary of the Government Operations Agency, Yolanda Richardson

Acting Director of the Department of General Services, Jennifer Osborn

Members of the California Building Standards Commission

Chair, Secretary Yolanda Richardson

Vice Chair, Rajesh Patel

Commissioners:

Kent Sasaki Erick Mikiten

Elley Klausbruckner Peter Santillan

Juvilyn Alegre Aaron Stockwell

Laura Rambin Licensed Contractor (vacant)

Public Member (vacant)

Executive Director, Mia Marvelli

Deputy Executive Director, Michael Nearman

The California Building Standards Commission is a commission within the Department of General Services

Visit our website at dgs.ca.gov/BSC

Table of Contents

Introduction ........................................................................................................................................... 1

Legislative Background ......................................................................................................................... 1

Regulations to Implement the Permit Fee Law ..................................................................................... 1 Fee Fundamentals ................................................................................................................................ 2

Sample Fee Calculations ...................................................................................................................... 3

Pay Fees Electronically ......................................................................................................................... 5 Frequently Asked Questions ................................................................................................................. 7

Appendix 1: State Law Regarding the Building Permit Surcharge Fee ............................................... 10 Appendix 2: CBSC Regulations to Implement the Permit Fee Law ..................................................... 11

Appendix 3: Fee Report Form BSC-2 ................................................................................................. 14

Appendix 4: Contact Information Form BSC-3 .................................................................................... 15

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Introduction This guide is provided by the California Building Standards Commission (CBSC) for the purpose of clarifying the state law, regulations, requirements and processes for cities, counties, and cities and counties (jurisdictions) to collect a fee for remittance to CBSC when issuing building permits. The fee shall be levied on building permits required for all disciplines covered by the California Building Standards Code in Title 24, California Code of Regulations (Title 24), and for which a valuation is made.

Legislative Background The California legislation that created the requirements for the building permit fee is Senate Bill 1473 of 2008 (Chapter 719, Statutes of 2008). It added new Sections 18931.6 and 18931.7 to the Health and Safety Code (HSC). Since then, Section 18931.7 has been amended twice, further clarifying the purpose of the fee. These two HSC sections are provided in Appendix 1 of this guide.

The purpose for establishing the Building Standards Administration Special Revolving Fund (BSASRF) is to fund activities of CBSC, the Department of Housing and Community Development (HCD), and the Office of the State Fire Marshal (SFM) that carry out the mandates of the California Building Standards Law (HSC, Division 13, Part 2.5) and State Housing Law (HSC, Division 13, Part 1.5) relating to building standards. HSC Section 18931.7 reads in part:

“...with emphasis placed on the development, adoption, publication, and updating of green building standards, the updating of verification guidelines for Tier 1 or Tier 2 green building standards and educational efforts, including, but not limited to, training for local building officials associated with green building standards.”

Reference Building Standards Bulletin 08-01 located on The Building Permit Fee page of our website for a summary of the law’s implementation.

Regulations to Implement the Permit Fee Law To implement the requirements of the HSC provisions, CBSC adopted regulations in Article 5 of Chapter 1 of Part 1, California Administrative Code (CAC), Title 24, California Code of Regulations. The regulations are provided in Appendix 2 of this guide. These regulations were updated during the 2019 Intervening Code Adoption Cycle to clarify how the fee should be calculated and assessed on building permits and are effective as of July 1, 2021. Those amendments are incorporated in this edition of this guide.

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Fee Fundamentals Following are requirements of law and other information to help jurisdictions properly collect, report and remit the building permit fee to CBSC:

1. Every California city, county, or city and county building department is required to collect and remit to CBSC the required surcharge on building permits.

2. The fee shall be levied on each individual building permit required for all disciplines subject to Title 24, including but not limited to, building, electrical, mechanical and plumbing, and for which a valuation is made.

3. Calculate the fee as required by CAC Section 1-505 (b), Fee Assessment:

Fees are assessed at a rate of $4 per $100,000, or fractions thereof, of each building permit valuation, but not less than one dollar per permit, as shown in Table 1-505:

Table 1-505 Building Permit Valuation Fee

BUILDING PERMIT VALUATION FEE $1– 25,000 $1 $25,000.01– 50,000 $2 $50,000.01– 75,000 $3 $75,000.01– 100,000 $4 Every $25,000.01 or fraction thereof above $100,000 Add $1

See fee calculation samples located on pages three and four.

4. Each jurisdiction may retain up to 10 percent of the collected fee to cover the cost of administration, code enforcement and education as permitted by HSC Section 18931.6.

5. Submit the fee payment in the form of a check or by electronic payment, less the allowed administrative retainer, to CBSC each quarter by the fifteenth (15th) day of the following month.

Submittal schedule: Months Quarter Due Date

January 1 through March 31 Quarter 3 April 15 April 1 through June 30 Quarter 4 July 15 July 1 through September 30 Quarter 1 October 15 October 1 through December 31 Quarter 2 January 15

Note: CBSC sends quarterly email reminders regarding the fee due date. Self-subscription to the mailing list is required and can be accessed via The Building Permit Fee webpage.

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6. The permit fee check must be accompanied by a completed copy of theFee Report Form (BSC-2), which is available on our website. See Appendix 3 for asample of the form.

7. Make checks payable to “California Building Standards Commission” and mailthe completed Fee Report Form and payment to:

California Building Standards Commission 2525 Natomas Park Drive, Suite 130 Sacramento, CA 95833

OR Submit payment electronically using CBSC’s electronic payment gateway (see section “Pay Fees Electronically” for instructions) and email the Fee Report Form and payment receipt to BSASRF_Fee@dgs.ca.gov.

8. The person responsible for preparing the report and payment must be subscribedto the BSASRF email list in order to receive quarterly reminder emails. Somejurisdictions prefer to subscribe a generic building department email address. Inthe event of a personnel change, be sure that the new employee subscribes tothe email list and submits a completed Contact Information Form (BSC-3), whichis available on our website. See Appendix 4 for a sample of the form.

Subscribe to the mailing list on CBSC’s Building Permit Fee webpage. 9. If a jurisdiction has overpaid, a refund must be requested. Regulations do not

allow deduction of the overpayment from a future remittance. See CaliforniaAdministrative Code, Chapter 1, Article 5, Section 1-509.

Sample Fee Calculations

Fees shall be calculated at a rate of $4 per $100,000, or fractions thereof, of each building permit valuation, but not less than one dollar per permit, as follows:

BUILDING PERMIT VALUATION FEE$1– 25,000 $1 $25,000.01– 50,000 $2 $50,000.01– 75,000 $3 $75,000.01– 100,000 $4 Every $25,000.01 or fraction thereof above $100,000 Add $1

Note: The fee must be calculated and remitted for each individual permit valuation, not for the total quarterly permit valuation within the jurisdiction. Dividing the total quarterly permit valuation by $25,000 results in inaccurate reporting of the fees that were charged to and collected from permit purchasers.

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1) For an individual permit valuation of $14,120• The fee is $1.00 for every $25,000 or fraction thereof• Therefore, the total fee is $1.00

Calculation Fee First $25,000 or fraction thereof $1.00

2) For an individual permit valuation of $38,211• The fee is $1.00 for the first $25,000, plus $1.00 for the remaining amount

of $13,211• The total fee is $2.00

Calculation Fee First $25,000 $1.00 Remaining amount of $13,211 $1.00 Total Building Permit Fee $2.00

3) For an individual permit valuation of $1,000,000

• The fee is $4 for the first $100,000 of valuation, plus $1 for each additional$25,000 of valuation

• $1,000,000 less the first $100,000 is $900,000• $900,000 divided by $25,000 equals $36• The total fee is $40

Calculation Fee First $100,000 $4.00 Remaining $900,000 ÷ $25,000 $36.00 Total Building Permit Fee: $40.00

4) For an individual permit valuation of $12,326,465• The fee is $4 for the first $100,000 of valuation, plus $1 for each additional

$25,000 of valuation or fraction thereof• $12,326,465 less $100,000 equals $12,226,465• $12,226,465 divided by $25,000 equals $489, with a remainder of $1,465• The fee for the remaining amount of $1,465 is $1• The total fee is $494.00

Calculation Fee First $100,000 $4.00 $12,326,465 – $100,000 = $12,226,465 $12,226,465 ÷ $25,000 = $489 $489.00 Remaining amount $1,465 $1.00 Total Building Permit Fee: $494.00

All fees reported to CBSC should be in whole dollar amounts prior to calculating the 10 percent local retainer.

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After calculating the fee, use this table to assist in verifying that the calculation is accurate.

If the Valuation Ranges: Your Calculated Fee should be: From $100,000 to $250,000 From $4 to $10 From $250,000 to $500,000 From $10 to $20 From $500,000 to $1,000,000 From $20 to $40 From $1,000,000 to $1,500,000 From $40 to $60 From $1,500,000 to $2,000,000 From $60 to $80 From $2,000,000 to $5,000,000 From $80 to $200 From $5,000,000 to $10,000,000 From $200 to $400 From $10,000,000 to $20,000,000 From $400 to $800 From $20,000,000 to $30,000,000 From $800 to $1,200 From $30,000,000 to $40,000,000 From $1,200 to $1,600 From $40,000,000 to $50,000,000 From $1,600 to $2,000 From $50,000,000 to $70,000,000 From $2,000 to $2,800

Reminder: Be sure to deduct your jurisdiction’s 10 percent on the Fee Report form before processing payment to CBSC.

Pay Fees Electronically Jurisdictions wishing to make electronic payments may do so using our Electronic Payment Gateway (EPG). There is no fee for e-check payments, however the payment processor does collect a fee of 2.99% of the payment amount if a credit card is used. With this method, the Fee Report and payment date information is emailed to CBSC, thereby saving paper and postage. Please notify CBSC at BSASRF_Fees@dgs.ca.gov before making the jurisdiction’s first electronic payment.

To make an electronic payment, follow these instructions:

Step 1 Calculate the quarterly fees and prepare the BSASRF Fee Report form.

Step 2 Visit the Fiserv payment platform at: www3.thepayplace.com/ca/dgsbsc/bsc/billpreview.aspx

Step 3 Enter the payment information. Note that the payment form is similar to the Fee Report form.

a. Enter the jurisdiction and payment date information. If paying more thanone quarter, please enter the quarter beginning and end dates so thepayment can be applied properly.

b. Select the payment method.c. Click “Next.”

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d. Select the “Use Business Name” box to pull up the proper form to fill outwith the jurisdiction’s payment information

e. Enter the jurisdiction’s (business) Billing Address information andPayment Details and Method, then click “Next.”

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Step 3 Review the payment information and click “Pay Now” to complete the payment. Use “Back” to make any necessary change. “Exit” will leave the payment screen without making a payment.

Step 4 Click “Printable Receipt” to generate a receipt for printing or saving as a PDF, then exit the payment platform.

Step 5 Email the Fee Report form and a copy of the receipt to the Fund Administrator at BSASRF_fee@dgs.ca.gov.

If there are any issues using the Fiserv payment platform, please email the address above or call the Fund Administrator at (916) 263-0916.

Frequently Asked Questions

What is SB 1473 and what is the money for?

Senate Bill 1473, Statutes of 2008 (Calderon), was enacted to require a surcharge on building permits in order to provide funds for CBSC, HCD and SFM to use in carrying out the mandates of the California Building Standards Law and the State Housing Law relating to building standards.

How is the fee calculated?

Refer to the Sample Fee Calculations on pages three and four of this guide. Please note that the fee must be calculated for each individual permit valuation, not for the total quarterly permit valuation within the jurisdiction. Dividing the total quarterly permit valuation by $25,000 results in inaccurate reporting of fees charged to and collected from permit purchasers.

Must the Fee Report Form be submitted at the time of payment?

Yes! The completed and signed Fee Report Form (BSC-2) must be mailed with the check or emailed after electronic payment for two important reasons:

• It indicates who reviewed and approved each quarterly submittal, and thesignature certifies that the fees assessed are correct and complete to the bestof the signatory’s knowledge and belief.

• It provides data to ensure that CBSC staff apply the fee to the correctjurisdiction and for the appropriate quarter.

When are the fees due?

The payment and Fee Report Form (BSC-2) are due on the fifteenth (15th) day of the month following the end of each reporting quarter as shown in the table on page two.

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Will a jurisdiction receive a bill or notice that the fee is due?

CBSC cannot create an exact invoice or bill because the fee is based on variable building permit valuations within each jurisdiction. However, each quarter an email reminder notice is sent to each jurisdiction that has subscribed to our email list. Visit our Building Permit Fee webpage and “Subscribe to the BSASRF (SB 1473) Mailing List” to receive quarterly reminders.

The person who handles our fee report has changed jobs. What do we do?

The new person must visit our Building Permit Fee webpage and “Subscribe to the BSASRF (SB 1473) Mailing List” in order to receive our quarterly reminder emails. If possible, the person who has moved should unsubscribe. The Contact Information Form (BSC-3) must be used to notify CBSC of the personnel change, but it will NOT subscribe new personnel to the quarterly reminder email list.

How do we explain this fee to our constituents when we add it to a permit?

See the Legislative Background discussion on page one of this guide. In brief, the fee was established by the legislature to fund the adoption and publication of, and educational efforts associated with, building standards, with an emphasis on green building standards. CBSC has created an informational flyer and postcard for the public that explains why we collect a surcharge on building permits. You may download the flyer as an electronic file from our Building Permit Fee webpage or email us at BSASRF_Fee@dgs.ca.gov to request the postcard. Then, just print it and provide as a handout to the public.

We have overlooked a reporting quarter. What should we do now?

If a jurisdiction overlooks a reporting quarter(s), a Fee Report Form for each past due quarter must be completed and submitted with the respective fees. However, the past and current quarterly fees may be paid with one check. See example below:

Past Due Quarters

Current Quarter

Fee Report

Required Fees (less 10%) Check Total

Jan-Mar 2021 Yes $4,559.20 Apr-June 2021 Yes $7,419.20

July-Sep 2021 Yes $3,679.60 $15,658

Can one check be submitted for multiple quarterly reports?

Yes! See answer to Question 8 above.

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Can an overpayment be deducted from a future remittance?

No! According to regulations, a written request may be filed with CBSC either by mail or email to CBSC at BSASRF_Fee@dgs.ca.gov. See California Administrative Code, Chapter 1, Article 5, Section 1-509.

Why are we allowed to keep 10%?

The 10 percent deduction is an allowance to cover the jurisdiction’s administrative costs, code enforcement and education efforts (HSC Section 18931.6).

Can we contact the CBSC with questions regarding the fee calculation and reports?

Yes, we are happy to assist you! Contact CBSC’s Fund Administrator at (916) 263-0916 or by email at BSASRF_Fee@dgs.ca.gov.

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Appendix 1: State Law Regarding the Building Permit Surcharge Fee HSC Section 18931.6. Building permit applicants; fees (a) Each city, county, or city and county shall collect a fee from any applicant for a building permit, assessed at the rate of four dollars ($4) per one hundred thousand dollars ($100,000) in valuation, as determined by the local building official, with appropriate fractions thereof, but not less than one dollar ($1). (b) The city, county, or city and county may retain not more than 10 percent of the fees collected under this section for related administrative costs and for code enforcement education, including, but not limited to, certifications in the voluntary construction inspector certification program, and shall transmit the remainder to the commission for deposit in the Building Standards Administration Special Revolving Fund established under Section 19831.7. (c) The commission may reduce the rate of the fee upon determining that a lesser amount is sufficient to maintain the programs established under this part. (Added by Stats. 2008, Ch. 719, Sec. 3. Effective January 1, 2009.)

HSC Section 18931.7. Building Standards Administration Special Revolving Fund; availability of monies (a) All funds received by the commission under this part shall be deposited in the Building Standards Administration Special Revolving Fund, which is hereby established in the State Treasury. (b) Moneys deposited in the fund shall be available, upon appropriation, to the commission, the department, and the Office of the State Fire Marshal for expenditure in carrying out the provisions of this part, and the provisions of Part 1.5 (commencing with Section 17910) that relate to building standards, as defined in Section 18909, with emphasis placed on the development, adoption, publication, and updating of green building standards, the updating of verification guidelines for Tier 1 or Tier 2 green building standards and educational efforts, including, but not limited to, training for local building officials associated with green building standards. (Amended by Stats. 2013, Ch. 585, Sec. 3. Effective January 1, 2014.) (Amended by Stats. 2009, Ch. 140, Sec. 108. Effective January 1, 2010.) (Added by Stats. 2008, Ch. 719, Sec. 3. Effective January 1, 2009.)

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Appendix 2: CBSC Regulations to Implement the Permit Fee Law California Code of Regulations

Title 24, Part 1, California Administrative Code Chapter 1, Administrative Regulations of the California Building Standards Commission

Article 5 CITY, COUNTY, AND CITY AND COUNTY

BUILDING PERMIT FEES

1-501. Purpose. This article establishes regulations for implementation of Health and Safety Code Sections 18931.6 and 18931.7, to require a surcharge on building permits in order to provide funds, upon appropriation, for the California Building Standards Commission, Department of Housing and Community Development and Office of the State Fire Marshal to use in carrying out the provisions of California Building Standards Law and of State Housing Law relating to building standards, with emphasis placed on the adoption, publication and educational efforts associated with green building standards. The fees are to be collected by cities, counties, and cities and counties and transmitted to the California Building Standards Commission. The fees are based on building permit valuation.

1-503. Definitions. The following terms are defined in Section 1-103. Definitions of this Chapter:

Building Standards Administration Special Revolving Fund (the Fund). Department. Fees, fractions thereof. Office.

1-505. Fee assessment. (a) Fees shall be levied on building permits required for all disciplines covered by

Title 24, including, but not limited to, building, electrical, mechanical and plumbing, and for which a valuation is made.

(b) Fees are assessed at a rate of $4 per $100,000, or fractions thereof, of each building permit valuation, but not less than $1 per permit, as shown in Table 1-505:

TABLE 1-505 BUILDING PERMIT VALUATION FEE

BUILDING PERMIT VALUATION FEE $1– 25,000 $1 $25,000.01– 50,000 $2 $50,000.01– 75,000 $3 $75,000.01– 100,000 $4 Every $25,000.01 or fraction thereof above $100,000 Add $1

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1. Cities, counties, and cities and counties may retain up to ten percent (10%) of the fees for related administrative costs, code enforcement, and education as permitted by Health and Safety Code Section 18931.6.

2. When a building permit is issued and no valuation is made, the city, county, or city and county may exempt that permit from fee assessment.

(c) The Commission may reduce the rate of the fee by regulation upon determination that a lesser fee is sufficient to carry out the programs of the Commission, the Department and the Office. The Commission may establish a termination date or duration for the fee reduction period. 1-507. Fee collection.

(a) Cities, counties, and cities and counties shall submit fees each quarter, commencing with the quarter beginning January 1 and ending March 31, 2009, due on the 15th day of the following month.

1. Each quarter, a city, county, and city and county shall submit a completed Fee Report Form (BSC-2) and a check made payable to the California Building Standards Commission, with the fees collected for that quarter. The check shall accompany the completed Fee Report Form (BSC-2).

2. A Contact Information Form (BSC-3) shall accompany the Fee Report Form and check only when contact information changes. Such changes include the city, county, or city and county address, telephone number(s), office or department contact, and/or building official.

3. The certified quarterly Fee Report Form, Contact Information Form as appropriate, and check shall be mailed together to the California Building Standards Commission, 2525 Natomas Park Drive, Suite 130, Sacramento, CA 95833.

Note: The forms and a detailed guidebook are available at the Commission’s website’s Building Permit Fee Page - dgs.ca.gov/BSC/BSASRF---The-Building-Permit-Fee.

(b) The Commission shall deposit the moneys collected into the Building Standards Administration Special Revolving Fund for use, upon appropriation, by the Commission, the Department, and the Office as specified in Section 1-501. 1-509. Request for refund of fees.

(a) When a city, county or city and county determines that excess fees were paid in error due to a miscalculation, a written request for refund may be filed with the California Building Standards Commission, 2525 Natomas Park Drive, Suite 130, Sacramento, CA 95833. The request for refund shall be submitted with all of the following:

1. A detailed summary describing the circumstances surrounding the miscalculation that occurred regarding the incorrect submission of fees;

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2. Documentation that demonstrates how the amount error occurred, and showingthe correct amount;

3. Written certification that the refund amount is accurate and true.

(b) Receipt of a request for refund of fees shall be acknowledged by the CaliforniaBuilding Standards Commission in writing within 45 days of receipt. The acknowledgement shall include whether additional supporting documentation is required in order to verify the refund amount.

(c) Should a city, county or city and county be delinquent in any past quarterly feesubmissions, the past due quarterly fee reports and respective payments shall be made current prior to resolution regarding a refund.

Authority: Health and Safety Code Sections 18909(c), 18929, 18930.5, 18931.6 and 18931.7 Reference: Health and Safety Code Sections 18930.5, 18931.6 and 18931.7

HISTORY: 1. (BSC 02/08) Add new Article 1-10, City, County, and City and County Building Permit Fees. Effective on

June 21, 2009.2. (BSC 01/13) Supplement to correct grammatical errors, clarify fee collection forms and add a website

reference in Article 5, Sections 1-503, 1-505, and 1-507. Approved by the California Building Standards Commission on July 22, 2014, filed with Secretary of State on July 30, 2014, effective August 30, 2014.

3. (BSC 01/15) Amend Chapter 1, Article 5, 1-509. Approved by the California Building Standards Commission on December 16, 2015, filed with the Secretary of State on December 21, 2015, and effective 30 days after filing with Secretary of State.

4. (BSC 01/19) Adoption of amendments to the 2019 California Administrative Code (CAC). Approved by the California Building Standards Commission on August 13, 2020, [filed with Secretary of State on August 20, 2020], published on January 1, 2021, effective 30 days after filing with Secretary of State.

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Appendix 3: Fee Report Form BSC-2

This form must be completed, signed and included with permit fee submittals to CBSC.

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Appendix 4: Contact Information Form BSC-3 Use this form to notify CBSC when your contact information changes.